The Olympics Light a Torch for the Stock Market

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The chart below shows the average stock market performance during the time periods surrounding the Olympic Games. On average, both the Dow Jones Industrial Average and the S&P 500 tend to drift lower in the two weeks before and the two weeks after the Olympics. But during the Olympic Games, history shows stocks tend to move higher – and significantly higher than any average historical two-week period.

Source: Strategas Research Partners

Looking at two weeks certainly should not be the foundation for a long-term investment strategy. However, during these Olympic Games, history says the stock market is less likely to take a dive like Upper Arlington native Abby Johnston, and instead is more likely to vault to new highs like Gabby Douglas.